Gold And Miner Funds Take Flight With Bernanke … Then They Don’t

By Brendan Conway

Gold’s price had initially been reacting to Federal Reserve chairman Ben Bernanke’s testimony as if “quantitative easing” were still little-known wonkspeak, and “tapering” was for runners.

But as of shortly after 10:30 a.m. ET, gold’s price — early up by 2% or so — was back to a gain of 0.7% or so. As in, back under $1,400. The reason: Bernanke said that “tapering” of the central bank’s QE efforts is possible within a few months.

“We could in the next few meetings, we could take a step down,” if the data suggests the Fed should, the Fed chairman told Congress. “It would not mean we are aiming to a complete wind down,” he said, but rather a gradual process that could be raised or lowered depending on the state of the economy.

There are 4 comments

Gold reacts more violently to the fed than anything else. Why? Arguablely stocks are rising mostly due to the feds largess. If qe3 were really in jeopardy the stock market would plunge and the fiscal deficit would be un financable. It will not end soon nor will it be reduced

Buy gold!

MAY 22, 2013 8:05 P.M.

EricTheRon wrote:

So what happened today (5/22/13)? Gold and silver bullion was down, understandably with the Fed statements, along with everything else. But gold and silver MINERS, they're up??? Can someone speak to this anomaly?

MAY 23, 2013 1:01 A.M.

fairtrade wrote:

@EricTheRon,
Miners are up because it has been leaked that big names like George Soros & John Paulson have bought these ETFs recently. The others just copy their action. Typical Herd Mentality.

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